I tried executing the below queries and found no problem from my side.

SET IDENTITY_iNSERT [dbo].[Table1] ON

INSERT [dbo].[Table1](Col1, Col2, Col3)

SELECT Col1, Col2, Col3 FROM [remotesrv].[remotedb].[dbo].[Table2]

SELECT @@ROWCOUNT as 'rowcount'

SET IDENTITY_INSERT [dbo].[Table1] OFF

And it gives pretty gud result too........

rowcount

-----------

3

Krissy, I was wondering if you can provide me of how Linked server was added onto your native Server..